Great Southern Mining, an emerging player in Western Australia’s gold sector, has secured a significant boost in funding, drawing attention from both financial institutions and key industry stakeholders. The company has completed a $2.5 million capital raise, marking a crucial step in advancing its exploration activities in the region.
Strategic Capital Raise Underpins Exploration Plans
The capital raise, priced at 1.7 cents per share, will provide Great Southern Mining with a much-needed cash infusion of $2.35 million, with an additional $153,000 coming from the company’s directors and management, contingent on shareholder approval at an upcoming general meeting in early 2025. The placement price reflects a modest 6% discount to the company’s most recent closing price and a 4.2% discount to the 10-day volume-weighted average price of its shares, signaling strong investor confidence and demand for the new shares.
This influx of capital will enable Great Southern Mining to intensify its gold exploration programs, particularly at its Duketon Gold Project in Western Australia. With a proven track record of successful drilling campaigns, the company plans to accelerate its drilling efforts to define resources and extend known mineralization across several high-potential targets.
Duketon Gold Project: A Focus on Expanding Resources
The Duketon Gold Project, a sprawling 178 square-kilometer exploration area covering 13 contiguous leases, is one of Great Southern’s flagship assets. Located within the Duketon Greenstone Belt, the project shares the same geological structure as Regis Resources’ multi-million-ounce Garden Well Gold Project, further highlighting its exploration potential.
In the last two years, Great Southern has made significant progress at Duketon, completing a series of successful drilling programs that have identified several promising targets, including Golden Boulder, Southern Star, and Amy Clarke. These targets have shown high-grade, shallow gold intercepts and gold anomalies that extend up to 5 kilometers.
The company’s immediate objective is to intensively drill these key targets to delineate an economic resource as quickly as possible. The current gold price, which is hovering around US$2,633 per ounce (AUD$4,059), provides a strong incentive to ramp up exploration and secure valuable gold assets.
Mon Ami Gold Project: Potential for Early Cash Flow
In addition to the Duketon project, Great Southern Mining is also focusing on its Mon Ami Gold Project, located near Laverton in Western Australia. Mon Ami is seen as a potential source of early cash flow for the company, with an estimated 55,000 ounces of gold grading 1.1 grams per tonne (g/t).
This project sits on a mining licence with all necessary permits in place, and an existing pit design adds to its “shovel-ready” status. Given its relatively low capital expenditure requirements, Mon Ami represents an attractive opportunity for Great Southern to generate early-stage cash flow as it advances its exploration efforts in WA.
Great Southern’s Managing Director, Matthew Keane, emphasized the company’s strengthened position following the capital raise: “The proceeds of this placement put Great Southern Mining in a strong position to aggressively explore its highly prospective 100% owned Western Australian project portfolio. The company is entering 2025 well capitalized, with exciting drilling programs planned at the Duketon Gold Project and the prospect of a maiden drilling program at the Edinburgh Park JV, under the management of the skilled Gold Fields team.”
Edinburgh Park Copper Project: A Joint Venture with Gold Fields
While Great Southern Mining’s focus is primarily on gold, the company is also advancing its exploration efforts in copper. The Edinburgh Park Copper Project, located approximately 100 kilometers southeast of Townsville in Queensland, is a key joint venture between Great Southern and Gold Fields Ltd, a top-ten global gold producer.
Gold Fields is committed to investing $15 million over the next six years in exploration at Edinburgh Park in exchange for a 75% stake in the project. Recent exploration work at Edinburgh Park has identified a substantial 2-kilometer-wide induced polarization anomaly at depth, a promising sign of the potential for a large-scale porphyry gold-copper or epithermal gold deposit.
This geophysical anomaly has drawn comparisons to the nearby Mount Leyshon Gold-Silver Mine, which hosts 3 million ounces of gold and silver, located approximately 120 kilometers to the west. Surface mapping and geochemical sampling across the 4-kilometer by 1-kilometer anomaly have shown high concentrations of gold, silver, copper, and molybdenum — a key indicator of porphyry deposits.
Gold Fields has continued to conduct geophysical surveys over the project area, aiming to identify additional targets for a 2025 drilling campaign. The project’s potential to host a major copper-gold deposit could be transformative for both Great Southern Mining and its joint venture partner.
Preparing for a Busy Year Ahead
With $2.5 million in fresh funding and promising exploration results across its portfolio, Great Southern Mining is well-positioned for an exciting year of exploration in 2025. The company’s strategic focus on high-potential gold targets in Western Australia, combined with its copper exploration efforts in Queensland, offers significant upside for investors.
The success of its joint venture with Gold Fields at Edinburgh Park could further strengthen Great Southern’s future prospects. A major copper-gold discovery in Queensland would not only diversify the company’s portfolio but also increase its chances of becoming a substantial producer in the Australian mining sector.
The Road Ahead: Gold Southern Mining’s Future Outlook
Looking forward, the $2.5 million capital raise positions Great Southern Mining for a period of growth and strategic exploration. The company’s immediate focus will be on accelerating drilling at the Duketon Gold Project to define resources and extend known mineralization. Additionally, Mon Ami remains an important project for early cash flow, with its relatively low-cost development offering immediate potential.
With the gold price at historically high levels and strong interest in its projects, Great Southern Mining is poised to capitalize on favorable market conditions. The company’s exploration plans for 2025 include both aggressive drilling at Duketon and the prospect of new discoveries at Edinburgh Park, which could significantly enhance its value proposition.
As Great Southern Mining prepares to execute its exploration strategy, it is clear that the company is poised to play an increasingly important role in the Australian gold and copper markets. With the backing of key investors and a solid portfolio of exploration assets, the future looks bright for this emerging mining company.
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